German financial regulator BaFin on Monday formally ordered Deutsche Bank to take action to prevent money laundering and terrorism financing, appointing a special representative to check the lender’s progress.
Deutsche Bank was ordered to “take appropriate internal safeguards and comply with general due diligence obligations”, BaFin said in a statement.
In a highly unusual step, the regulator also appointed a special independent auditor at the bank to monitor its implementation of the procedures and to report back on its progress. It is the first time the banking regulator has installed such a monitor at a German lender.
BaFin on Monday afternoon issued a short statement, but did not provide any detail on what had triggered its move.
Deutsche Bank was not immediately available for a statement.